BW Group-backed Danish offshore wind contractor Cadeler has agreed senior secured green loan deals worth €550m ($592.5m).

The financing is led by DNB and supported by Rabobank, Credit Agricole, Danske Bank, Oversea-Chinese Banking Corporation (OCBC), Standard Chartered Bank and Societe Generale.

The loans will be used to refinance existing vessels in Cadeler and Eneti ahead of the contemplated business combination between the two companies and to finance crane upgrades of Cadeler’s two existing vessels and to fund general corporate and working capital purposes.

Cadeler also recently sealed a €50m green loan deal with HSBC, which will among other things, be directed towards the company’s newbuild projects and to boost the existing O-class vessels with new improved cranes.

The Cadeler fleet consists of two operational wind turbine installation vessels (WTIVs), two of the so-called X-class WTIVs under construction and a pair of wind foundation installation newbuilds scheduled for delivery between 2024 and 2026. In June, the company sealed a merger deal with Emanuele Lauro-led counterpart Eneti. The deal will see Cadeler and Eneti shareholders own 60% and 40% respectively of the combined company. After the merger, the combined group will be named Cadeler, be headquartered in Copenhagen and have a combined fleet of 10 modern offshore wind construction units.

Mikkel Gleerup, CEO of Cadeler said: “The strong support from Nordic and global banks to successfully close this secured green loan facility underlines the trust in Cadeler’s vision and capability to facilitate the renewable transition. With Cadeler’s strategic position in the market, we are well placed to meet the increasing global demands and to execute the largest and most complex offshore wind installation projects.”